Power to Tax + Spend

Question 1

Article 1, Section 2 – Representatives and direct taxes shall be ____, according to their __

Answer 1

apportioned among the several States, respective numbers

Question 2

Article 1, Section 8 says Congress has power to lay taxes but all ___

Answer 2

duties/imposts/excises shall be uniform throughout the US

Question 3

What is a duty

Answer 3

tax on imports

Question 4

What are imposts and excises

Answer 4

taxes paid on manufactured goods or other things/events

Question 5

What was reason for apportionment?

Answer 5

protect Southern states which had lots of people and land (Hylton, Patterson)

Question 6

There are effectively no apportioned taxes today, since direct taxes are ___

Answer 6

mostly income taxes, which are not apportioned under 16th

Question 7

Uniformity and apportionment are ___

Answer 7

mutually inconsistent

Question 8

But both uniformity and apportionment are satisfied by ___

Answer 8

capitation (per person tax)

Question 9

What is a direct tax

Answer 9

tax on source of wealth

Question 10

____ say capitation and property taxes are direct taxes

Answer 10

Hytlon, sebelius

Question 11

Pollock ____ to direct taxes

Answer 11

added income

Question 12

16th amendment says Congress can lay tax on ___

Answer 12

all incomes (including raised from land) w/o apportionment

Question 13

Sebelius says can include tax ___

Answer 13

on omission

Question 14

What is an indirect tax

Answer 14

tax on stuff obtained through that wealth

Question 15

What are constitutional purposes of taxing

Answer 15

(1) pay debts of US (2) provide for common defense and general welfare

Question 16

Congress’ power to tax is a major difference between __

Answer 16

Const and AC

Question 17

What is problem with wealth tax under apportionment

Answer 17

injustice substantially higher in poorer states, fewer people to spread tax burden among

Question 18

In Hylton, Iredell says that if treating tax as direct would ____ then ___

Answer 18

lead to unjust/absurd results, not a direct tax

Question 19

Hamburger: Congress can tax to regulate because ___

Answer 19

what can’t do under CC or NP can do under taxing clause

Question 20

Bailey v. Drexel holding

Answer 20

“tax” was actually a penalty because (1) it was high (10% of all profit, no matter how much child labor used) (2) scienter requirement (3) enforced by DOL not IRS

Question 21

Bailey supports the idea that Congress cannot tax to ___

Answer 21

regulate something it cannot otherwise regulate under its enumerated powers

Question 22

License Tax Cases facts

Answer 22

IRS license and fee requirement for selling lottery tickets and liquor (even if purely intrastate)

Question 23

License Tax Cases holding

Answer 23

Expansive –> Ct agreed Congress would have no power of regulation of business at issue but found Cong. could impose license requirement as a tax (can tax activites can’t directly regulate under CC)

Question 24

Veazie Bank facts

Answer 24

Federal tax on bank notes opponents charged as “excessive”

Question 25

Veazie Bank holding

Answer 25

Expansive –> Ct upheld tax, whether tax excessive doesn’t disable Taxing Clause but matter for legislative judgement

Question 26

McCray facts

Answer 26

tax on margarine probably enacted to benefit butter-makers

Question 27

McCray holding

Answer 27

Expansive –> Court disclaimed any power to invalidate a tax simply because of the policy motivations that may have prompted it

Question 28

Court said Bailey case distinguishable from Veazie and McCray because this one involved ___

Answer 28

detailed specifications of a regulation of a state concern and business with a heavy exaction to promote the efficency of such regulation (restrictive)

Question 29

Steward Machine Co facts

Answer 29

SS Act included tax designed to induce states to adopt own unemployment comp laws

Question 30

Steward Machine Co holding

Answer 30

Expansive –> upheld a broad power to impose taxes to achieve social policy objectives not merely to raise revenues

Question 31

Kahringer facts

Answer 31

fed tax on bookies

Question 32

Kahringer holding

Answer 32

Expansive –> upheld tax, regardless of its regulatory effect, it produces revenue

Question 33

Hylton (1796) facts

Answer 33

Cong passed tax on carriages (luxury good), not appropriated on basis of population

Question 34

Hylton holding

Answer 34

Indirect tax so no apportionment required

Question 35

Hylton Iredell

Answer 35

If cannot be apportioned, it is not direct tax

Question 36

Hylton Patterson

Answer 36

main (and perhaps) only intended objects of direct tax are taxes on people and land (protect Southern states)

Question 37

Hylton Chase

Answer 37

rule of apportionment should only be adopted in cases where it can reasonably aply (here can’t without very great inequality and injustice)

Question 38

Pollock

Answer 38

federal income tax that was not apportioned

Question 39

Pollock holding

Answer 39

tax on person’s entire income is direct tax so fed income tax unconstitutional

Question 40

16th amendment says Congress shall have power to lay and collect taxes on incomes ____

Answer 40

from whatever source derived, without apportionment .. and without regard to any census

Question 41

Dangers of using tax as regulation

Answer 41

not limited by subject matter (threatens limits on govt), different consequences (if breach regulation go to hearing, if don’t pay tax IRS has harsh administrative proceeding)

Question 42

A regulation ___ but taxes may just be __

Answer 42

creates a duty, part of doing business